Abstract:
Nanophase Technologies (Nasdaq: NANX), a technology leader in nanomaterials and advanced nanoengineered products, noted initial nanomaterial orders for new applications in two new markets.

Nanophase Expands Into New Market Segments

ROMEOVILLE, IL | Posted on May 29th, 2008

Nanophase remains intensely focused on delivering superior product value to targeted markets and customers. The Company continues to rigorously advance customer and product opportunities through its improved sales process and to leverage its investment in R&D application development for nanomaterial-enabled products. This focused approach has resulted in two new customer orders from the animal hygiene and electronics market.

Nanophase has targeted a particular area of the animal hygiene market and is working with leading companies to develop formulations incorporating nanomaterials. The Company has received an initial order from one such company to support a new product launch slated for introduction in the near future. Nanophase is continuing product development with other companies in the same market segment.

Nanophase also noted initial orders for an electronics application that uses nanomaterials as key additives to dissipate an electrostatic discharge transient. The key functionality of the nanomaterial layer is to provide electrostatic discharge protection to improve reliability across a broad range of electronic systems and devices.

"Both of these new applications represent target markets for Nanophase that we are approaching through our new stage gate sales process," stated Kevin Wenta, EVP of Sales and Marketing. "It is gratifying to see the initial results of Nanophase's improved sales and marketing process. We are optimistic for continued growth in both of these markets and successes in other new applications."

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About Nanophase Technologies Nanophase Technologies Corporation (NANX), www.nanophase.com, is a leader in nanomaterials technologies and provides nanoengineered solutions for multiple industrial product applications. Using a platform of patented and proprietary integrated nanomaterial technologies, the Company creates products with unique performance attributes from two ISO 9001:2000 and ISO 14001 facilities. Nanophase delivers commercial quantity and quality nanoparticles, coated nanoparticles, and nanoparticle dispersions in a variety of media. The Company owns or licenses 18 United States and 49 foreign patents and patent applications. Information about Nanophase may be found in the Company’s public filings or on its website.

This press release contains words such as "expects", "shall", "will", "believes" and similar expressions that are intended to identify forward-looking statements within the meaning of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Such statements in this announcement are made based on the Company’s current beliefs, known events and circumstances at the time of publication, and as such, are subject in the future to unforeseen risks and uncertainties that could cause the Company’s results of operations, performance and achievements to differ materially from current expectations expressed in, or implied by, these forward-looking statements. These risk and uncertainties include the following: a decision by a customer to cancel a purchase order or supply agreement in light of the Company’s dependence on a limited number of key customers; uncertain demand for, and acceptance of, the Company’s nanocrystalline materials; the Company’s manufacturing capacity and product mix flexibility in light of customer demand; the Company’s limited marketing experience; changes in development and distribution relationships; the impact of competitive products and technologies; the Company’s dependence on patents and protection of proprietary information; the resolution of litigation in which the Company may become involved; and other risks described in the Company’s Form 10Q filed May 9, 2008, and other filings with the Securities and Exchange Commission. In addition, the Company’s forward-looking statements could be affected by general industry and market conditions and growth rates. Except as required by federal securities laws, the Company undertakes no obligation to update or revise these forward-looking statements to reflect new events, uncertainties or other contingencies.